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EU and China reach Agreement in principle on Investment

The EU and China have on December 30, 2020 concluded in principle the politicial negotiations for a Comprehensive Agreement on Investment (CAI). The conclusion in principle of the negotiations is a first step in the process; deliberations for the adoption and ratification of the agreement are yet to take place and will be conducted in full transparency.

The agreement aims to balance EU-China trade relations, improve and expand European investors' access to the Chinese market, increase the predictability of the Chinese environment and provide adequate protection for EU investors in the Chinese market. The negotiations placed a high benchmark on transparency, maintaining a level playing field, market access commitments and sustainable development.

The package deal reached includes a commitment by both sides to try to complete negotiations on investment protection and investment dispute settlement within 2 years of the signature of the CAI. The EU's objective remains to modernise and replace the existing Member States' Bilateral Investment Treaties with China.

Both sides are now working towards finalising the text of the agreement, which will need to be legally reviewed and translated before it can be submitted for approval by the EU Council and the European Parliament.

The full text of the Agreement is available at the website of the European Commission.